A decision making model for vendor-buyer inventory systems

In a vendor-buyer supply chain, the buyer's economic order quantity and the vendor's optimal number of deliveries are derived either independently or collaboratively. In this paper, we establish a two-stage vendor-buyer inventory system decision model by using bi-level decision making approach. The experimental result shows that the proposed bi-level decision model can effectively handle two-stage vendor-buyer inventory problems and obtain better results than the existing methods. © 2009 Springer-Verlag Berlin Heidelberg